Meaning, Uses and Saving of Money for Livestock Farming for JSS 1

Concept of Money

Performance Objectives

By the end of the lesson, students should be able to:

1. explain the meaning and origin of money;
2. discuss the uses of money;
3. state the importance and methods of saving money.
4. describe the sources of funding for poultry, rabbit, sheep and goat production start-up;
5. create a savings card;
6. show how to carefully record savings.

Meaning and Evolution of Money

Money is anything generally accepted as a medium of exchange for goods and services.

Before money was invented, people exchanged goods and services directly. This system was called barter. For example, a farmer with yam might exchange it for a goat from another farmer. However, the barter system had many problems. It was often difficult to find someone who had exactly what you wanted and also wanted what you had. This problem is known as the “double coincidence of wants”.

To solve the problems of barter, people started using certain items as a form of money. These items were valuable, durable, and easy to carry. In different parts of Nigeria and Africa, things like cowries (shells), salt, beads, and even livestock (like goats or cattle) were used as early forms of money. These items made trade easier because everyone accepted them.

Over time, societies developed more convenient forms of money. Metals like gold and silver were used to make coins. Later, paper money was introduced, which was easier to carry in large amounts. Today, we use banknotes and coins issued by the Central Bank of Nigeria, and also digital forms of money for transactions.

Uses of Money

Money serves several important purposes in our daily lives and in business, including livestock farming. The main uses of money are:

1. Medium of Exchange: Money makes it easy to buy and sell goods and services. Instead of exchanging a goat for bags of feed, a farmer can sell the goat for money and then use that money to buy the feed, medicines, or other things needed for the farm. This avoids the problems of the barter system.

2. Measure of Value: Money helps us to compare the value of different goods and services. For example, a bag of chicken feed might cost N5,000, while a young chick costs N500. This shows that the bag of feed is worth ten times more than the chick. Without money, it would be hard to know how much one item is worth compared to another.

3. Store of Value: Money allows people to save their wealth for future use. If a farmer sells a ram today, the money received can be kept and used later to buy more animals, repair the farm pen, or pay for school fees. Money holds its value over time, making it possible to save for future needs.

Saving Money

Meaning of Saving Money

Saving money means keeping a portion of your income or earnings aside instead of spending it immediately. It is setting aside money for future needs or goals.

Importance of Saving Money

Saving money is very important for individuals, families, and businesses, especially for those involved in livestock farming. The importance of saving money includes:

1. For Future Needs: Saving helps to meet future expenses, such as buying new equipment for the farm, expanding the animal pens, or purchasing more animals.

2. For Emergencies: Unexpected events can happen, like an animal falling sick and needing expensive treatment, or a sudden repair needed on the farm. Savings provide a safety net for such emergencies.

3. Achieving Goals: If a JSS1 student dreams of starting a small poultry farm in the future, saving money from an early age can help achieve that goal. Savings allow people to work towards bigger plans.

4. Investment: Saved money can be used to invest in a business, like buying young chicks or rabbits to raise and sell for profit. This helps the money to grow.

5. Financial Security: Having savings gives a sense of security and reduces worry about money problems.

Methods of Saving Money

There are several simple ways to save money:

1. Using a Piggy Bank: A piggy bank is a container, often shaped like a pig, used to collect and store coins and small notes. It is a simple and common way for children and adults to save money at home.

2. Saving at Home (Safe Place): Money can be kept in a secure place at home, such as a locked box or a hidden drawer. This method requires discipline to avoid spending the money.

3. Saving with a Bank: Opening a savings account at a commercial bank is a secure way to save money. Banks keep money safe and may even pay a small interest on the savings.

4. Cooperative Societies (Esusu/Ajo): In many Nigerian communities, people save money together through cooperative societies or traditional savings groups like Esusu or Ajo. Members contribute regularly, and the total amount is given to each member in turns or used for group investments.

Sources of Funding for Livestock Farming Start-up

Starting any business, including livestock farming, requires money. For young people or those just beginning, the initial funds often come from personal or family sources. These sources are important for starting small-scale poultry, rabbit, sheep, or goat production.

1. Personal Sources: These are funds that an individual has saved or can generate on their own. For a JSS1 student interested in livestock farming, personal sources could include:

   1. Personal Savings: Money saved from allowances, gifts, or small earnings from chores.

   2. Selling Personal Items: Selling old toys, books, or other items that are no longer needed, with permission from parents or guardians.

   3. Small Jobs: Earning money from helping neighbours with simple tasks like fetching water, sweeping, or running errands.

2. Family Sources: These are funds obtained from family members who support the idea of starting a livestock farm. Family sources can include:

   1. Parents: Parents can provide money as a gift, a loan, or an investment in the child’s farming project.

   2. Siblings: Older brothers or sisters might be willing to contribute some money to help start the farm.

   3. Other Relatives: Uncles, aunts, or grandparents who believe in the project might offer financial support.

Designing and Making a Savings Card

A savings card is a simple tool to help you keep track of the money you save. It helps you see your progress and encourages you to save more.

The required materials are:

1. A piece of cardboard paper or thick drawing paper.
2. A ruler.
3. A pencil.
4. An eraser.
5. Coloured pens or markers (optional, for decoration).

The procedure involves the following steps:

1. Prepare the Cardboard: Take a piece of cardboard paper. You can cut it into a rectangular shape, about the size of a small notebook or a postcard.

2. Draw the Layout: Use your ruler and pencil to draw lines on the cardboard to create columns and rows. You will need columns for:

   1. Date (when you saved the money)
   2. Amount Saved (how much money you put aside)
   3. Total Savings (the running total of all your savings)

3. Add a Title: At the top of the card, write a clear title like “My Savings Card” or “Livestock Farm Savings”.

4. Decorate (Optional): You can use coloured pens or markers to make your savings card attractive. You might draw pictures of chickens, rabbits, or goats to remind you of your farming goal.

Demonstrating How to Carefully Record Savings

Once you have your savings card, it is important to record your savings carefully and accurately. This helps you know exactly how much money you have saved.

The required materials are:

1. Your designed savings card.
2. A pen.
3. Any money you have saved (coins or notes).

The procedure involves the following steps:

1. Get Your Money Ready: Gather the money you want to save. Count it carefully to know the exact amount.

2. Find the Current Date: Look at a calendar or ask an adult for today’s date.

3. Record the Date: In the “Date” column of your savings card, write down the current date.

4. Record the Amount Saved: In the “Amount Saved (N)” column, write down the exact amount of money you are saving today.

5. Calculate Total Savings: Add the “Amount Saved” today to your previous “Total Savings”. If this is your first time saving, the “Total Savings” will be the same as the “Amount Saved” today.

6. Record the New Total: In the “Total Savings (N)” column, write down the new total amount you have saved so far.

7. Store Your Money Safely: Place the money you just recorded into your piggy bank or other safe place.

Always write clearly and neatly on your savings card. Check your calculations to make sure your total savings are correct.